Chinese Stock Momentum Screen Using Limit-Ups and Moving-Average Alignment

Summary

This proposed Chinese equity screen combines three signals: at least five moving averages described as overlapping, more than two limit-up sessions within ten days, and a 20-day moving average above the 120-day average. The article frames the limit-up count as a sign of strong near-term interest and the moving-average relationship as evidence of trend strength. It also suggests considering valuation ratios and technical indicators such as MACD and Bollinger Bands as additional filters.

The accompanying code sketch shows example filters for averages, limit-up counts, valuation, and indicators, but it does not establish that the implementation correctly measures the stated conditions. No backtest or return evidence is reported. The note acknowledges reversal and overvaluation risks: strong recent price action may not persist. It supplies no entry, exit, or position-sizing rules, so this is a screening concept rather than a fully specified trading system.

Key ideas

• The screen combines moving-average overlap, frequent recent limit-up sessions, and a rising short-to-long average relationship.\nThe article proposes valuation and technical filters as possible additions.\nRecent limit-up activity may reverse, and strong expectations can leave a stock overvalued.\nThe code sketch and article provide no backtest evidence or complete trading rules.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.